Mozambique: Total’s Mega Gas Project Unlikely to Resume in 2022

Google+ Pinterest LinkedIn Tumblr +
  • African forecasting and analysis consultancy, NKC African Economics, this week communicated that cancellation of contracts between oil company Total and local suppliers in northern Mozambique means that the project is unlikely to resume next year.

In a brief , sent to their clients, the analysts wrote that despite the 25-kilometre radius around the works declared a special security zone, the insurgents have managed to launch multiple attacks within the area and are better prepared than in previous attacks, which creates new security challenges.

The analysts said the global focus on involvement in the Islamic State, rather than on the local root causes of the movement (poverty, lack of socio-economic development) in Cabo Delgado, makes it easier for the government to ignore the political failures and corruption that fuel the insurgency.

Related news: Total plans to invest USD 2.5 billion in local Mozambique business’s  

Furthermore, they pointed out, the Mozambican government’s refusal to allow foreign troops suggests that the government is still trying to hide the reality of the security situation in the area, which has caused embarrassment in the past.

Recalling the importance of exploration projects for financing the development of Mozambique’s economy, NKC African Economics also wrote that Mozambique’s goal was to be a gas exporter from 2024, but the projects will not succeed in this environment, so the response has to go beyond military intervention and include the socio-economic development of the region.

The oil company has indefinitely abandoned the Rovuma basin natural gas exploration megaproject, Africa’s largest private investment worth about USD 25 billion, after an armed group attacked the town of Palma on 24 March this year. Read more

Author: Bryan Groenendaal


Leave A Reply

About Author

Green Building Africa promotes the need for net carbon zero buildings and cities in Africa. We are fiercely independent and encourage outlying thinkers to contribute to the #netcarbonzero movement. Climate change is upon us and now is the time to react in a more diverse and broader approach to sustainability in the built environment. We challenge architects, property developers, urban planners, renewable energy professionals and green building specialists. We also challenge the funding houses and regulators and the role they play in facilitating investment into green projects. Lastly, we explore and investigate new technology and real-time data to speed up the journey in realising a net carbon zero environment for our children.

Copyright Green Building Africa 2024.